{
“headline”: “Gold Prices Continue to Fall Amid Rising US Consumer Confidence”,
“content”:
“
Gold prices remained under pressure on Tuesday as a strong reading of US consumer confidence bolstered investor sentiment, pushing the metal further away from its multi-year highs.
The Conference Board’s Consumer Confidence Index rose to 91.2 in June, beating expectations and sending gold prices tumbling below $1,800 per ounce for the first time since April.
Gold prices have been on a decline since peaking at over $2,000 per ounce in March due to a combination of factors including rising interest rates, increased investor optimism, and a strong US dollar.
The latest reading of consumer confidence has sparked concerns that investors may be shifting their focus towards other assets such as stocks and bonds, which have historically performed better during periods of economic growth.
\”The strong Consumer Confidence Index reading suggests that consumers are feeling more optimistic about the economy, which could lead to increased spending and higher inflation,\” said David Walquist, a senior analyst at Kitco Metals. \”This is bearish for gold prices in the short term.\”
The US dollar index, which measures the greenback’s value against a basket of major currencies, has been on a steady rise since February, making gold more expensive for holders of other currencies.
Gold ETFs, such as SPDR Gold Shares and iShares Gold Trust, have also seen increased outflows in recent weeks, suggesting that investors are losing confidence in the metal’s prospects.
yesterday
Market Reaction
- Gold prices fell 0.7% to $1,796 per ounce on the London Bullion Market Association (LBMA) and 0.8% to $1,803 per ounce on the COMEX division of the Chicago Mercantile Exchange (CME).
- The price of gold futures contracts for August delivery plummeted by 2.1% to $1,794.90 per ounce.
About the Author
